Bonds surge, call rate remains bearish

The government bond (G-Sec) surged further on sustained buying support from banks and corporates.
Meanwhile, the overnight call money rate remained bearish due to lower demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 shot-up to Rs 101.08 from Rs 100.5675, while its yield held declined at 8.66 per cent from 8.74 per cent.
The 8.12 per cent government security maturing in 2020 jumped to Rs 97.4350 from Rs 97.1475, while its yield fell to 8.65 per cent from 8.71 per cent.
The 8.28 per cent government security maturing in 2027 also climbed to Rs 96.5850 from Rs 96.00, while its yield moved down to 8.72 per cent from 8.79 per cent.

The 7.80 per cent government security maturing in 2020, the 8.27 per cent government security maturing in 2020 and the 7.28 per cent government security maturing in 2019 were also quoted higher at Rs 95.98, Rs 98.6825 and Rs 94.98, respectively.
The overnight call money rates finished lower at 7.00 per cent from 8.70 per cent yesterday. It moved in a wide range of 8.60 per cent and 6.90 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 198.67 billion in 50-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 49.05 billion from 4-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.